Financing in brief top news 2

EurotaxGlass’s International is preparing to launch a €355m debt package backing Candover’s €480m secondary buyout of the company. Bank of Scotland is bookrunner.

The €257.5m senior debt comprises a €57.5m seven-year term loan A at 225bp over Euribor, a €77.5m eight-year B loan at 250bp, a €77.5m nine-year loan C at 300bp, a €15m seven-year revolving credit facility paying 225bp and a €30m seven-year acquisition facility that also pays 225bp.

There is also a €22.5m 9-1/2 year second lien piece paying 525bp and a €75m 10-year mezzanine loan at 425bp.

HM Capital was renamed from Hicks Muse Tate and Furst after spinning off its European arm as Lion Capital last year. Lion Capital continued to manage EurotaxGlass’s after the separation.

EurotaxGlass’s International is a Swiss company specialising in providing data, solutions, and business intelligence services for the automotive community.

HM Capital put the company up for sale only a year after it recapitalised its debt. The company took a dividend from the €165m recapitalisation through lead BNP Paribas in March 2005. HM Capital has been an investor in the deal since the original tie-up between Glass’s and Eurotax in 2000.

Kabel Baden-Wuerttemberg is preparing to launch syndication of its €1bn plus loan through bookrunners Morgan Stanley and RBS.

Kabel BW had been expected to issue a high-yield bond, but was persuaded to issue in the loan market on account of the additional flexibility it would gain. The German cable provider is expected to incur significant capital expenditure as it upgrades its network, which would have been difficult under the terms of a bond.

Kabel BW was last in the market in March last year with a €676m loan, which was well supported, particularly on the B and C tranches. Leads on that deal were Citigroup, JPMorgan and Morgan Stanley.

  • Bartec, the leading European supplier of explosion protective products, has launched a €100m refinancing of the LBO closed in 2002 when Bartec was bought by Allianz Capital Partners.

The all-senior loan comprises a €30m seven-year term loan A, a €20m eight-year term loanC and a €15m seven-year revolver priced at standard levels. It also features a €15m seven-year acquisition facility priced at 250bp. Leverage is more than 4x.

  • UK engineering company Invensys has mandated Banc of America Securities, Deutsche Bank, HSBC, Lloyds TSB, Morgan Stanley and RBS to arrange a £700m refinancing along with a £340m rights issue that will tidy up the company’s balance sheet and pay down some of its expensive debt.